Luxembourg's Commission de Surveillance du Secteur Financier (CSSF), Europe's first crypto license issuer, has identified another unregistered crypto firm.
On 31 January CSSF announced the firm, Crypto Bull, working under the URL crypto-bull.io, has been claimed to be Luxembourg-based while the company does not have any permission to issue crypto services in the country. The warning notice issued by CSSF stated that people were informed that this firm had not been given any permission to issue financial services or other investment services from or within Luxembourg.
While Luxembourg has been favourable to the crypto industry as the nation houses significant global cryptocurrency exchange like Bitstamp. Earlier in 2016, CSSF, which regulates crypto exchanges in Luxembourg, reportedly provided the first crypto license to Bitstamp in Europe.
Some sources previously reported that Luxembourg's government had seen cryptocurrencies as "intangible assets" that cannot be subjected to income tax until they could be exchanged with fiat. As such from August 2019, all crypto transactions were exempted from VAT within the country.
Luxembourg is a country that has been encouraging the local crypto ecosystem development. The country's authorities have always been observing the market for potential fraudsters and scammers. In September 2019, the CSSF red-flagged fraudulent clone website's activities. The site was representing BitPay, a crypto payment service provider. Earlier, an alert was issued by the regulator against another crypto-related entity, Cryptominingoptionsignal. The regulator claimed the entity to be licensed in Luxembourg.
The Crypto Bull's website cited the firm has placed itself as a technologically oriented and reliable platform for crypto trading. Crypto Bull has been claimed to be settled at 2, place de Paris, 2314 Luxembourg. However, the website hasn't regarded whether the company was licensed or not.
According to the phone numbers of three related company on the site, Crypto Bull appeared to be providing services to customers in Spain, the United Kingdom and Russia.
Crypto Bull's domain supposedly was registered in February 2019. It had a good opportunity to cheat crypto users. Some online reviews claimed that the company was not a reliable investment platform but rather a cryptocurrency Ponzi scheme. According to some reports, Crypto Bull has already gained some spotlight by officials from Spain and Italy. Both countries have blacklisted Crypto Bull as a scam.